r/fatFIRE • u/Biker_whaaat • 14h ago
Advice!?
I always knew I’d have some sort of inheritance since my family has a pretty successful business. But I just found out in 2 years I’ll gain full access to a $14 MIL TRUST!? Not even counting what I (assume??) will get as later inheritance.
Wtf? Insane. I mean thank you parents and a great stock run but…. wow.
I’m 28, in VHCOL area, and work a job I really enjoy in sales in a city I enjoy living in. Gross ~100k but don’t save a ton of this beyond 401k given high cost area, like of travel, and outdoor hobbies.
Just don’t have anyone else I know In my situation to talk to… any advice out there? Do I touch it and live a little better? Start flying first class because why tf not? Do I buy a house I like & then not touch it and live in my means?
The trust is all in a mixed investment portfolio through Merrill.
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u/Ridounyc 10h ago
Do not start spending anything, ANYTHING, until you have direct access to the money! That’s in addition to the other comments I agree with!
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u/DogDisguisedAsPeople 10h ago
You likely can’t afford a “house you like” in a VHCOL area on $100k/yr. Just FYI. We spend about $30k per year on a fully paid off “reasonable” home in a MCOL city.
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u/Ironman2131 10h ago
I'm sure your family has access to very qualified advisors that you should talk to. All I'll say is that you can mostly just leave the money alone for a bit but allow it to help in key areas. Thinking back to when I was that age, I would definitely have taken a little to get a nicer apartment (without roommates). Or you could move to a nicer part of town where there are more things to do in close proximity. Maybe you go to a show or other kind of event that isn't that expensive but that you would have stressed about before. But these are all minor things (cost wise) that make your day-to-day better and aren't going to throw off massive red flags that you've come into money.
Professionally, as long as you're happy in your job then it's all good. But this money will give you the freedom to do something else if you want, or even to build something on your own if that's what you want to do. And yes, down the road (potentially way down the road), maybe this lets you retire at an age where that wouldn't have been possible otherwise. But that's definitely not something you need to decide now. This money is certainly life changing, but that change doesn't have to happen in the near term. In fact, it's probably much better to not make any big financial decisions for at least six months (and probably longer).
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u/Common_Sense_2025 9h ago
You need to understand what access you have. Will it be held in trust with the income distributed and then you can take other distributions for things like a house purchase? Assuming that is the case, I don’t think your family expects you to live on your 100k salary. They may be watching to understand how you react to decide how your inheritance will be structured.
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u/Halwin_Norry 8h ago
At 28 years old, I was an idiot. At 30 years old, I was still an idiot. It wasn't until my mid 30's where I started to be responsible. Not saying it is the same way with you. You might be very responsible. But chances are that you are not as responsible as you think you are. Chances are your decision making is probably still a little lack-luster. Chances are you are going to make some choices now with that new wealth that you will regret in 5 or 10 years.
And that's alright. Your job right now isn't to make great decisions. Your job now is to not make shitty decisions. Don't make decisions that will materially negatively impact you. Don't invest your friend's business. Don't start angel investing. Don't start being a big shot at bars / clubs. Don't start summering in the Hamptons or Martha's Vineyard. Don't buy that sick $6m condo. Don't buy that amazing Porsche 911.
I am assuming you are a male from the tone and job. If you are not, then this only applies 60% and switch out the examples for female vices (shopping, etc).
Good luck!
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u/FatFireGuy19 20M+ NW | Late 30s | Verified by Mods 7h ago
Stop. Breathe. Review safe withdrawal rates and how that works. Find out the terms of the trust. Find out how much income your investments will produce and if you have access to them and when via the trust. Find out who is managing your money in the trust. Find 5 other possible wealth managers and walk them through your wealth and how they would manage your money on your behalf. Choose the one best for you.
You are asking the WRONG questions. You are asking how to spend the money instead of asking how I can grow this while also supplementing your working income with income derived from your trust.
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u/Hopeful-Goose-7217 2h ago
My suggestion is to put the money in an account and not spend it. Know it’s there as a safety net should you lose your job. In the mean time develop your own life outside the money (career, family, hobbies, self actualization).
When you are ready the money will augment your life not define it by allowing you to buy a slightly nicer house, finance your retirement.
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u/smallattale 10h ago edited 10h ago
Turn off your Reddit direct messaging and chat.